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fixedThis model was originally developed to test out ideas and learn things. This was meant to see what would happen if agents made their decisions on profit maximization and price-distance tradeoffs. From this, it was found that a supply and demand curve could be found. It is probably a borrowed idea but few have probably tried to find out the resulting curves. The model was meant to reconstruct a view on economics from the bottom up. Elastic, inelastic, fixed, variable - these are all relativistic terms. Elastic graphs can look inelastic if the measuring unit of supply quantity is changed. And fixed costs are only fixed within in a certain range, as a single shipment may suffice for a given tonnage and considered fixed, but over the long-term may be variable. A supply curve may curve down, as fixed costs are outweighed by earnings or even if the output per input is greater than a unit. If 2 units are sold at $2 for 1 $1 work there's a $1 profit, but 4 units sold at $2 for 2 $1 work will be $6 profit - a decrease in marginal cost of 1/3. This was a problem a few days ago, but using a more reasonable production range and price-distance utility equivalance of $0.03-to-1 cm reasonable curves are obtained, as the marginal cost increased. Also, a firm that operates on profitability and marginal cost - the intersection of supply and demand - may gain greater profit by getting over a "cost hump" and the difference between supply as marginal cost and average cost is the difference between a profit-maximizer and a firm just covering expenses. A case where average is greater than marginal is a point after a decrease in average cost or slope, and a demand intersection with marginal cost in that case leads to losses. It is the important if hard to understand difference between marginal and average cost. Marginal cost is the differential of average cost. Marginal cost tells one how much one should sell at given what has already been produced or sold. The assumption is that everything leading up to the current quantity has been sold at the price it cost to produce. It is maximizing over short jumps. Production is continuous with time. At a single unit of production, the differential is equal to the average. The average and marginal are really the same - cost - except at different scales of quantity or time. It really depends on the point at which a price is set and sale made.
States, Firms, & Households changes
fixedThis model was originally developed to test out ideas and learn things. This was meant to see what would happen if agents made their decisions on profit maximization and price-distance tradeoffs. From this, it was found that a supply and demand curve could be found. It is probably a borrowed idea but few have probably tried to find out the resulting curves. The model was meant to reconstruct a view on economics from the bottom up. Elastic, inelastic, fixed, variable - these are all relativistic terms. Elastic graphs can look inelastic if the measuring unit of supply quantity is changed. And fixed costs are only fixed within in a certain range, as a single shipment may suffice for a given tonnage and considered fixed, but over the long-term may be variable. A supply curve may curve down, as fixed costs are outweighed by earnings or even if the output per input is greater than a unit. If 2 units are sold at $2 for 1 $1 work there's a $1 profit, but 4 units sold at $2 for 2 $1 work will be $6 profit - a decrease in marginal cost of 1/3. This was a problem a few days ago, but using a more reasonable production range and price-distance utility equivalance of $0.03-to-1 cm reasonable curves are obtained, as the marginal cost increased. Also, a firm that operates on profitability and marginal cost - the intersection of supply and demand - may gain greater profit by getting over a "cost hump" and the difference between supply as marginal cost and average cost is the difference between a profit-maximizer and a firm just covering expenses. A case where average is greater than marginal is a point after a decrease in average cost or slope, and a demand intersection with marginal cost in that case leads to losses. It is the important if hard to understand difference between marginal and average cost. Marginal cost is the differential of average cost. Marginal cost tells one how much one should sell at given what has already been produced or sold. The assumption is that everything leading up to the current quantity has been sold at the price it cost to produce. It is maximizing over short jumps. Production is continuous with time. At a single unit of production, the differential is equal to the average. The average and marginal are really the same - cost - except at different scales of quantity or time. It really depends on the point at which a price is set and sale made.
This model was originally developed to test out ideas and learn things. This was meant to see what would happen if agents made their decisions on profit maximization and price-distance tradeoffs. From this, it was found that a supply and demand curve could be found. It is probably a borrowed idea but few have probably tried to find out the resulting curves. The model was meant to reconstruct a view on economics from the bottom up. Elastic, inelastic, fixed, variable - these are all relativistic terms. Elastic graphs can look inelastic if the measuring unit of supply quantity is changed. And fixed costs are only fixed within in a certain range, as a single shipment may suffice for a given tonnage and considered fixed, but over the long-term may be variable. A supply curve may curve down, as fixed costs are outweighed by earnings or even if the output per input is greater than a unit. If 2 units are sold at $2 for 1 $1 work there's a $1 profit, but 4 units sold at $2 for 2 $1 work will be $6 profit - a decrease in marginal cost of 1/3. This was a problem a few days ago, but using a more reasonable production range and price-distance utility equivalance of $0.03-to-1 cm reasonable curves are obtained, as the marginal cost increased. Also, a firm that operates on profitability and marginal cost - the intersection of supply and demand - may gain greater profit by getting over a "cost hump" and the difference between supply as marginal cost and average cost is the difference between a profit-maximizer and a firm just covering expenses. A case where average is greater than marginal is a point after a decrease in average cost or slope, and a demand intersection with marginal cost in that case leads to losses. It is the important if hard to understand difference between marginal and average cost. Marginal cost is the differential of average cost. Marginal cost tells one how much one should sell at given what has already been produced or sold. The assumption is that everything leading up to the current quantity has been sold at the price it cost to produce. It is maximizing over short jumps. Production is continuous with time. At a single unit of production, the differential is equal to the average. The average and marginal are really the same - cost - except at different scales of quantity or time. It really depends on the point at which a price is set and sale made.
